Car allowance and mileage

SuzieSue

subway98 wrote: »

I!!!8217;ve been advised not to give VAT receipts for fuel.

Who advised you to do that and why? I don't think your employer will pay your mileage claim unless you give them a VAT receipt.

foxy-stoat

Subway, my company car allowance is around £4500 gross a year and do reasonably well. I think you have selected the wrong car based on your figures.

If you spend on average £150 a week and drive 700 business miles, based on £1.35/ltr then your getting less than 30mpg then you need to think about changing cars to make this work better for you. Your car costs you £0.214 per mile for fuel only.

Round figures if you do an average of 700 miles a week for 48 weeks a year then you should be driving around 33,600 business miles a year, leaving personal mileage out of it.

You will pay £0.214 X 33,600 = £7,190.40 for the business fuel.
33,600 X 0.11 = £3,696.00 that you employer will pay you on a monthly basis
You will reclaim £0.34 for the first 10,000 miles from HMRC in April = £3,400.00
Then you will reclaim £0.14 for the other 24,600 miles from HMRC = £3,444.44

So you should be ahead by £3,623.44 plus your monthly car allowance to pay for the vehicle, MOT, servicing, repairs, insurance.

Reclaiming your mileage from the HMRC will take you less than 5 minutes to do online, assuming you have already registered for self assessment and have the Government Gateway already set up - this may take a few weeks to sort out.

The refund may take a while to come in but certainly worth the "ache".

SuzieSue

foxy-stoat wrote: »

You will reclaim £0.34 for the first 10,000 miles from HMRC in April = £3,400.00
Then you will reclaim £0.14 for the other 24,600 miles from HMRC = £3,444.44

.

You only get tax relief on the difference, you don't get the whole difference back from HMRC.

foxy-stoat

SuzieSue wrote: »

You only get tax relief on the difference, you don't get the whole difference back from HMRC.

Oh I get it now - sorry chaps !